Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

EUR/USD, GBP/USD, and USD/JPY fall back towards key support

EUR/USD, GBP/USD, and USD/JPY all fall back towards key support, but will we see a rebound or breakdown?

Video poster image
Transcript

EUR/USD falls back below key support

EUR/USD ended the week with a bang, as the pair slumped back below the $1.2104 low set on Friday prior to that.

The recent decline through trendline support appears to have paved the way for further weakness, and the tentative move through $1.2104 support on Friday looks to build on that. With that in mind, we could be on the cusp of further downside from here. A break up through the $1.2218 swing-high would be required to bring a more bullish picture back into play.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD drifts back towards trendline support

GBP/USD has been drifting lower over the course of the past two weeks, with the pair moving back into a confluence of the ascending and descending trendlines.

The moving average and trendline support coming into play thus far this morning does highlight the potential for a rebound from this level. Thus, the outlook will ultimately be borne out of whether the price rebounds or breaks below this cluster of moving average and trendline support. Given the consolidation seen over recent weeks, it is likely that the short term brings another rebound back towards resistance.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

USD/JPY turning higher from ascending trendline

USD/JPY has been grinding higher over much of the past two months, with the latest bout of weakness in early June taking us back into trendline and moving average support.

With the price gradually moving higher from that area of support, there is a strong chance we see the pair continue its ascent from here. Such a move would look to take us into trendline resistance. With that in mind, a bullish outlook is in play unless we see trendline and simple moving average (SMA) support broken.

USD/JPY chart Source: ProRealTime
USD/JPY chart Source: ProRealTime

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.